Browse CFA Level 2 Essentials

Chapter 4: Corporate Finance, Governance, and Valuation

Chapter 4: Corporate Finance, Governance, and Valuation explains the core concepts, key definitions, and practical implications you need for solid analysis. It highlights common pitfalls and the intuition behind the methods so the results are interpreted correctly.

In this section

  • Capital Structure and Leverage Analysis
    Capital Structure and Leverage Analysis (CFA Level 2): Covers Capital Structure Theories and Trade-Off Theory with key formulas and practical examples. Includes exam-style practice questions with explanations.
  • Corporate Governance, Risk Management, and ESG
    Corporate Governance, Risk Management, and ESG (CFA Level 2): Covers Corporate Governance Fundamentals and Risk Management Approaches with key formulas and practical examples. Includes exam-style practice questions with explanations.
  • Valuation of Corporate Issuers
    Valuation of Corporate Issuers (CFA Level 2): Covers Free Cash Flow Valuation and FCFF vs. FCFE with key formulas and practical examples. Includes exam-style practice questions with explanations.
  • Dividend Policy and Share Repurchases
    Dividend Policy and Share Repurchases (CFA Level 2): Covers Dividend Policy Theories and Dividend Irrelevance Theory (Miller and Modigliani) with key formulas and practical examples. Includes exam-style practice questions with explanations.
  • Advanced Cost of Capital and Corporate Restructuring
    Advanced Cost of Capital and Corporate Restructuring (CFA Level 2): Covers Advanced Cost of Capital Estimation and The Role of WACC with key formulas and practical examples. Includes exam-style practice questions with explanations.

Important Notice: FinancialAnalystGuide.com provides supplemental CFA study materials, including mock exams, sample exam questions, and other practice resources to aid your exam preparation. These resources are not affiliated with or endorsed by the CFA Institute. CFA® and Chartered Financial Analyst® are registered trademarks owned exclusively by CFA Institute. Our content is independent, and we do not guarantee exam success. CFA Institute does not endorse, promote, or warrant the accuracy or quality of our products.

Chapter 3: Advanced Financial Statement Analysis and Interpretation
Chapter 5: Equity Valuation—Models, Applications, and Market Nuances